USD/JPY Approaches Critical Decision Zone at 109 Level
|The USD/JPY broke above the resistance trend line (dotted red), which could indicate a bullish reversal or an expanded bullish correction within wave 4 (blue). The FOMC on Wednesday 11 December 2019 is expected to have a substantial impact.
USD/JPY
4 hour
The USD/JPY main decision zone is the round level of 109. A bullish break above that could invalidate (red x) the wave 4 (blue) pattern whereas a bearish bounce could confirm it and send the pair lower. A bearish breakout below the support (blue) lines could further confirm (green check) the bearish outlook towards the Fibonacci targets of wave B vs A, with the 61.8% Fib as the main target (red circle).
1 hour
The USD/JPY could be building 5 waves (orange) within the wave C (green) of wave 4 (blue). A bearish bounce at the 38.2% or 50% Fibonacci retracement level is most common for a wave 4 (blue) whereas a break above the 61.8% Fib makes a wave 4 (blue) less likely (red x). A bounce and breakout could confirm (green checks) the bearish outlook.
The analysis has been done with the CAMMACD.MTF template.
For more daily technical and wave analysis and updates, sign-up up to our ecs.LIVE channel.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.